Mobile Internet Development in China

Transcription

1 Mobile Internet Development in China Bob Chao Chief Analyst & Research Academy Vice President iresearch Consulting Group Shanghai Beijing Guangzhou Internet Research, Insight Research

2 Overview 1. About iresearch Consulting Group 2. Evolution of Mobile Internet 3. Development of Mobile Internet Market 4. China Mobile Internet Usage & Demographics 5. Application of Mobile Internet

3 Who We Are? iresearch is established in Shanghai in With offices in both Shanghai and Beijing, iresearch has about 110 employees. iresearch is the first company that focused on Internet economy in China. iresearch focuses on online advertising, online service, search engine, digital recreation, e-business, mobile internet and mobile value-added service, etc.

4 What We Do? Research and Consulting: iresearch Inc. Data and info: iresearch Data+ Media and Events iresearch.cn & Conferences Industry Consulting Customized Research Ad Research User Behavior Website Advertising Industry Events

5 iresearch Clients Define the Internet Ecosystem iresearch has hundreds of clients from various fields Internet Enterprises Traditional Enterprises Advertising Agencies Investment related IT Enterprises

6 Overview 1. About iresearch Consulting Group 2. Evolution of Mobile Internet 3. Development of Mobile Internet Market 4. China Mobile Internet Usage & Demographics 5. Application of Mobile Internet

7 Evolution of Cellular Standards The Evolution of Cellular Standards in China 1G 2G 3G 4G s TACS GSM GPRS EDGE TD-SCDMA WCDMA CDMA2000 Systems Beyond IMT-2000 Voice Service Voice/Low Speed Data (9.6~64Kbps) Voice/High Speed Data(384~2000Kbps) Voice/Ultra-High Speed Data The Cellular Standards Supported by the Major Vendors in China Vendor Cellular Voice Cellular Data High Speed Data China Mobile GSM GPRS/EDGE TD-SCDMA China Unicom GSM GPRS WCDMA China Telecom CDMA CDMA2000 1X CDMA2000 EV-DO

8 Mobile Terminal Trend: Smartphone The Evolution of Mobile Phone Mile Stone 2.5G 3G Mobile Phone: An Active Node of Internet G Voice Java Music Touch screen High Speed Data 2003 Camera WAP P2P WLAN Cellphone Navigation Smartphone Worldwide Mobile Terminal Market Share Worldwide Smartphone Market Share 23.0% 4.7% 5.6% 10.7% 36.8% 19.3% 2009Q2 19.0% 7.5% 39.5% 10.0% 15.2% 8.8% 2008Q2 Nokia Samsung LG Motorola Sony Ericsson Others 3.0% 13.9% 6.0% 45.0% 13.3% 18.7% 2009Q2 3.3% 4.1% 2.8% 25.1% 47.4% 17.3% 2008Q2 Nokia RIM Apple HTC Fujitsu Others Source: Gartner,2009/08

9 Rich Mobile Internet Service Personal Service Personalization of Mobile Internet Services Business and Life Service Mobile Commerce / Payment / LBS / Security / Auction Information and Content Service Internet Access / Search Engine / Navigation / Video / Music / Gaming / Comic / TV Communication SMS / MMS / Push to Talk / / IM / Videophone GSM / CDMA / GPRS/EDGE / TD-SCDMA / WCDMA / CDMA2000 EV-DO/ 3G LTE/ 4G Evolution of Mobile Terminal and Network

10 Overview 1. About iresearch Consulting Group 2. Evolution of Mobile Internet 3. Development of Mobile Internet Market 4. China Mobile Internet Usage & Demographics 5. Application of Mobile Internet

11 The Mobile Internet Market Opportunity China Mobile Telecommunications Market Trend and Forecast China Ministry of Industry and Information Technology(MIIT) issued on January, 2009, 3G licenses for China Mobile, China Unicom and China Telecom % % 17.2% 18.7% 17.2% China Mobile Operator 3G Brand China Mobile China Unicom China Telecom Total Number of Subscriber(Million) Growth Rate(%) Source: MIIT China Mobile Internet Market Scale Trend and Forecast % 25.4% 33.8% 47.5% 41.4% e 2010e 2011e 2012e China Mobile Internet User Market Trend and Forecast % 51.3% 29.7% 26.9% 35.1% e 2010e 2011e 2012e Market Scale(Billion RMB) Growth Rate(%) Total Number of User(Million) Growth Rate(%) Source:iResearch

12 The Mobile Internet Value-Chain Radio Access Network Core Network Transport Network Network Equipment Vendor IT Solution Provider Technology Solution Semiconductor Vendor Content Product Content Provider Processor and Chipsets Network Operator Content Product Software Vendor Custom-Made Mobile Terminal Information Service Information Provider Software Service Mobile Terminal Vendor Voice and Data Service Mobile Phone Digital Content Product Mobile Internet User Information and Content Service

13 The Mobile Internet Business Models Network Operator Value-Chain Control Platform + Service Terminal + Application Portal + Software Mobile Terminal Vendor Integrated Solutions for Full Service on-demand Information Provider Best Product and Service

14 Network Operator Control Value-Chain Network Operator: Platform + Service Information/Content Provider Network Operator Content Music Video TV Game Information Search Mail Blog SNS Voice Network Access Internet VPN Content News Entertainment Music Information SMS MMS IM Customer Mobile Terminal Vendor Billing System:Time Traffic Content Custom-Made Mobile Phone Netbook Laptop Subscriber Database Network Card USB Data Card Mobile Internet Platform Network Operator:Value-Chain Control Domestic International

15 Mobile Terminal Vendor Integrates Solutions Mobile Terminal Vendor: Smartphone + Application Information/Content Provider Content Music Video TV Game Info News Mail Blog SNS Application Platform Entertainment Life Education Business. Mobile Terminal Vendor Terminal Product Cellphone Smartphone Netbook Laptop MID. Domestic Ophone + Mobile Market Search Movie Dinner Manu Business Ticket Check Security Application Service Integration Open Environment of Application Development Customer Product and Service Brand Network Operator Network Access Mobile Terminal Vendor:Integrated Solutions for Full Service on-demand International iphone + App Store International Smartphone + OVI International Smartphone + Mobile Market

16 ISP/CP Provide Best Product and Service ISP/CP: Portal + Software Application Information/Content Provider Terminal Vendor Information Content Search Business News SNS Blog Music Video Game Novel Map Restaurant Real Estate Dictionary B2C C2C Travel Credit Card Mobile Phone Portal Internet Portal Software Smartphone Netbook MID Laptop Customer Network Operator Network Access Information/Content Provider:Best Product and Service Domestic Portal + IM Domestic Portal + Mobile Phone Brower

17 Internet Vendor Network Operator Faces More Challenges Network Operator Mobile Terminal Vendor Mobile internet Mobile Internet Vendor

18 Overview 1. About iresearch Consulting Group 2. Evolution of Mobile Internet 3. Development of Mobile Internet Market 4. China Mobile Internet Usage & Demographics 5. Application of Mobile Internet

19 Age Distribution: Teenage Phenomenon Male users(88.2%) used mobile internet, compared to female users(17.8%). The largest user group of mobile internet is 18~30 years old. 2009China Mobile Internet User Gender Distribution 17.8% Male Female 88.2% ~40 31~35 25~30 18~ % 3.5% 2009 China Mobile Internet User Age Distribution 2.6% 5.6% 5.2% 10.3% 8.1% 5.5% 16.9% 24.4% 50.7% 65.5% 0% 10% 20% 30% 40% 50% 60% 70% Methodology:36286 mobile internet users from 15 major China mobile phone portal websites in July, 2009

20 Higher Education Users Growing 61.3% mobile internet users are less than high school education. The number of undergraduate and below users increased 3.8% year-over-year. The number of high school users decreased by 6.1% year over year, from 37.7% to 31.6% China Mobile Internet User Education Distribution Postgraduate and above 0.4% 1.5% Undergraduate Junior College 16.6% 19.3% 18.1% 17.9% High School High School and Below 27.2% 29.7% 31.6% 37.7% 0% 5% 10% 15% 20% 25% 30% 35% 40% Methodology:36286 mobile internet users from 15 major China mobile phone portal websites in July, 2009.

21 Middle and High Income Groups Increase 51.7% mobile internet users were 1000~3000 RMB income-group RMB and 1000~3000 RMB users increased by 5.7% and 9.4% year-over-year China Moblie Internet User Monthly Income 5000 Above 3001~ ~ ~ Below RMB 0% 10% 20% 30% 40% 50% 60% Methodology:36286 mobile internet users from 15 major China mobile phone portal websites in July, 2009.

22 Frequent Growing, but Slowing 70.9% users surf on the mobile internet 5~7 days per week. 83.9% Users choose During work day, when I take a break as the time when they get mobile internet service China Mobile Internet User Frequent Distribution 2009 China Mobile Internet User Time Distribution 5~7 Days 3~4 Days 10.5% 11.1% 68.3% 70.9% During Work Day, when I take a break During Holiday 45.2% 83.9% 1~2 Days 3.8% 3.7% During Work Hours 31.4% 1 Day - 2.0% 1.9% 0% 20% 40% 60% 80% 0% 50% 100% Methodology:36286 mobile internet users from 15 major China mobile phone portal websites in July, 2009.

23 News, Chatting and Search are Popular 71.8% of Mobile internet users choose news service. The most popular mobile internet services are News, Chatting and Search China Mobile Internet User Purpose Distribution News Chatting Seach inf ormation Read Novel Download Ringtone, Picture SNS Other Media Program 18.4% 15.9% 16.9% 11.6% 11.7% 7.4% 28.8% 28.1% 34.4% 27.1% 43.0% 42.4% 59.4% 55.2% 57.7% 50.5% 68.3% 71.8% 0% 10% 20% 30% 40% 50% 60% 70% 80% Methodology:36286 mobile internet users from 15 major China mobile phone portal websites in July, 2009.

24 Mobile Browser Increased Especially Mobile browser, IM and document management grow. Mobile browser, video, IM, read and game are the killer applications Mobile Software Service Distribution Browser Video IM Read Game Secruity Document Management Stock Information Picture Edit other 17.3% 16.6% 14.6% 16.5% 15.1% 14.4% 17.4% 12.5% 15.9% 26.4% 45.0% 40.4% 40.4% 31.2% 35.4% 36.3% 34.7% 33.9% 55.6% 60.6% 0% 10% 20% 30% 40% 50% 60% 70% Methodology:36286 mobile internet users from 15 major China mobile phone portal websites in July, 2009.

25 MVAS:Mobile Software Emerging 2009 China Mobile Value-Added Service Pattern Mobile Software Mobile Read MMS Mobile Game Download Ringtone, Nerw Based on SMS SNS/Blog Mobile Banking CRBT Mobile Map Mobile Payment Navigation M-Commerce Mobile Video Mobile Search TV Program Two-dimensional code IVR 20.3% 18.8% 16.1% 16.0% 15.3% 14.6% 13.4% 10.9% 8.3% 7.9% 7.3% 6.9% 6.2% 5.3% 3.3% 2.9% 1.3% 0.9% 47.3% 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50% Methodology:36286 mobile internet users from 15 major China mobile phone portal websites in July, 2009.

26 Overview 1. About iresearch Consulting Group 2. Evolution of Mobile Internet 3. Development of Mobile Internet Market 4. China Mobile Internet Usage & Demographics 5. Application of Mobile Internet

27 Mobile Advertising Market Growing Rapidly LBS AD China Mobile Advertising Market Trend and Forecast Video AD Mobile Advertising SNS AD % 133.3% 125.0% 117.5% 101.5% 2760 Search AD Text Link AD Banner AD e 2010e 2011e Mobile Advertising Market Scale(Million RMB) Source:iResearch Growth Rate(%) Mobile Advertising is a sector of the overall advertising industry that is reaching an important milestone. Advertisers Agencies AD Networks Mobile Service Customer

28 Strong Growth in Mobile Game Market China Mobile Game User Market Trend and Forecast % 57.6% % 21.9% % China Mobile Game Market Trend and Forecast 30.0% 38.5% 44.4% 53.8% 85.0% e 2010e 2011e 2012e e 2010e 2011e 2012e Mobile Game User(Million) Growth Rate(%) Mobile Game Market Scale(Billion RMB) Growth Rate(%) Source:iResearch Mobile game revenues from downloadable games and mobile multi-player online games (MMO). Sequential strong performance in mobile MMO is driven by an increase in mobile internet users and a higher percentage of users purchasing in-game virtual items.

29 Future of Mobile Search China Mobile Search User Market Trend and Forecast % 40.40% 37.60% 34.90% 38.80% China Mobile Search Market Trend and Forecast % % 96.60% 84.20% 77.10% e 2010e 2011e 2012e e 2010e 2012e 2013e Mobile Search User(Million) Source:iResearch Growth Rate(%) Mobile Search Market Scale(Million RMB) Growth Rate(%) Mobile Search in the Future Location Search Visual Search Mobile Search Voice Search Social Search Vertical Search Mobile Search will organize the world s information and make it universally accessible.

30 iresearch Consulting Group China s Leading Internet Data Product Provider China s Leading Research Provider Focuses on Internet Business China s Leading Research Provider Focuses on Online Advertising Thank You! Bob Chao Bob@iResearch.com.cn